Projects involving the acquisition of private land for public purposes often tend to be hurried. That may prompt those trying to secure your land to try and pressure you to accept whatever they are willing to offer. Yet you have the right to know what factors the state uses to determine just compensation in eminent domain cases.
According to information shared by the Minnesota State Legislature, just compensation is influenced heavily by the fair market value of a property. The guidelines that the state uses in determining fair market value come from both previous state court rulings as well as recommendations found in The Dictionary of Real Estate Appraisal. From these resources, the state has set four methods of determining the value of your property:
- Comparable sales in the area
- Income capitalization based off of projected future revenues of income-producing properties
- Reproduction costs for an replacement structure less depreciation
- Development costs based on the cost for developing and re-selling the land
On top of the money netted from the sale of your property, you may be entitled to compensation for attorney fees, appraisal costs, and relocation expenses and for the potential loss of future business revenue. You can find out more about eminent domain issues by continuing to explore our site.